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NFC arriving soon than “sooner”: $30 Billion Opportunity in 3 years.

Posted in The Technology Ecosystem by Manas Ganguly on September 3, 2009

A new analysis from Juniper Research of the NFC opportunity forecasts that the application of NFC as a mobile retail marketing tool via coupons and smart posters will support the growth of NFC mobile payment transaction values from $8bn in 2009 to $30bn within three years. The new report found that such is the excitement about the potential of NFC, vendors are developing and launching a variety of interim solutions such as stickers and SD cards to get NFC to market faster on existing phones rather than new NFC enabled phones. The interim progression steps in the NFC world include NFC stickers affixed to the phone or any other portable device or stickers affixed to the SIM as in the case of Techmahindra and NFC SD cards that will plug into the SD card slot. There are also interim solutions including key fobs, companion “mini SD cards” and watches.

An example of an NFC sticker is the Twinlinx My Max NFC sticker, which is a 1.8mm thick electronic sticker that adds NFC capability to existing mobile phones. It uses Bluetooth to connect to the phone and has an internal rechargeable battery to get power independent of the phone battery.CPI and INSIDE created the industry’s first contactless sticker product for open loop /branded bank card payments. The sticker technology cobines the flexible Micropass 4003 contactless payment processor with a tuned RF antenna for payment sticker applications. The payment sticker, based on INSIDE’s MicroPass contactless chip technology, can be affixed to any portable device such as a phone. In December 2008, Giesecke and Devrient launched the first SD card (secure digital card) with integrated NFC capability. Although marketed with emphasis as a mobile security card, it can also be used for contactless mobile payment assuming availability of acceptance points equipped with a POS reader.

giesecke and Devrient

Giesecke and Devrient NFC SD Card


Twinlinx My-Max NFC Sticker

NFC Mobile Marketing Opportunity

The first wave of NFC services will centre on transport ticketing and payments (urban metro/train/bus/transit networks). STIF Paris has announced that it will deploy NFC transport ticketing in Paris by the end of 2010.That is as soon NFC could go mainstream in usage. These services will be supported by NFC infrastructure such as mobile coupons, smart posters, gift vouchers and loyalty programmes.There are numerous possibilities for one to one, personalized marketing opportunities and even consumers will be able to drive the type of offers and information that they would like to receive thereby reducing junk.

The $30 billion Marketing opportunity.

NFC will achieve traction initially in developed countries and regions with Japan leading the way. NFC based payment schemes are predominantly aimed as an alternative method of payment of cash for smaller transactions. Currently the transaction size limits are $25 in the USA, EUR20 in western Europe and GBP10 in the UK.

A small animation cliping on usage of the NFC:

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